VERX - Vertex: Nothing Too Special

• Vertex is a tax technology company with 40 years of experience and with more than half the Fortune 500 in its customer portfolio.
• With its strong competitive position, Vertex can easily achieve industry-like growth rates, but not higher than that due to limitations in expanding its customer base.
• The company has a low EBITDA due to large investments in R&D and marketing and sales.
• I calculated a forward EBITDA multiple by combining its current valuation with expected growth rate and expected EBITDA margin. Comparing this multiple to that of the average of the US market, I conclude that an investment now in Vertex is not worth it.

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